Opinion

The FINANCIAL -- On 30. June, a few hours before the debt service failing through the Greece government, the IMF published the debt sustainability analysis. The IMF reported about the € 52 B outstanding debt amount for the next three years, knowing full well that the Hellenic country can not afford in their own. The rescue depended on the foreign support, even they have been limited by the International Monetary Funds (IMF), the European Central Bank (ECB) and the EFSF-ESM (European Financial Stability Funds , European Stability Mechanism) as plenipotentiary Institution of the European Union. The size of liabilities with medium and long term duration exceeds € 250 B, having time buffer up to 30 years, so in the sum -  the accumulated public debt/annual GDP ratio of the country – the most important macroeconomic data -  should lie at 180%.

The FINANCIAL -- In June of 2015, the average cost of cooking one standard Imeretian Khachapuri fell to 2.85GEL, which is 1% lower month-on-month (compared to May 2015), and 0.8% higher year-on-year (compared to June 2014).

The FINANCIAL -- An average Georgian household spends more than 40% of its budget on food. It therefore stands to reason that Georgian consumers are quite sensitive to food prices, which may be very good news considering recent developments in global commodity markets. According to the latest World Bank’s Food Price Watch, “international food prices declined by 14% between August 2014 and May 2015, sliding into a five-year low.” For lower-middle income households this could result in a 6% increase in disposable income, allowing households to spend more on other consumption items and invest e.g. in the education of their children.

The FINANCIAL -- Since the Rose Revolution, pro-Western Georgian politicians are dreaming to lead their country into the apparently safe haven of NATO. So far with little success, causing disappointment among many Georgians and affirming those who preferred less integration in the Western geopolitical bloc and more alignment with Russia. In this debate, however, some aspects are largely overlooked, which let Georgia’s NATO aspirations appear in a more favorable light.

The FINANCIAL -- When Georgia ran into a conflict with its northern neighbor in 2008, it experienced considerable solidarity on part of its main Western ally. The United States supplied military transporters to fly back Georgian troops from Afghanistan, which was correctly understood by the Russians as a warning that the US would not allow Georgia to fall.

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